Homeowners Insurance: How to Save on Your Policy and Find Additional Home Insurance Discounts

Most lenders require you to have homeowners insurance. But just because it is required does not mean that all policies cost the same amount. There are several ways you can save money on your homeowners insurance. Wouldn't you rather put the money you've saved into your home?

Shop Around for the Best Homeowners Insurance Premium

Shopping around for your homeowners insurance can lead to savings. Just like with car insurance, comparing rates can lead to savings on your homeowners insurance premiums. Using InsWeb.com's online insurance questionnaire can make shopping and comparing quotes quick and easy.

Look For Multi-Policy Insurance Policies

Most insurance companies that sell insurance products other than homeowners insurance will offer consumers discounts for buying more than one product from them. For example, if your auto insurance company also sells homeowners insurance, you might get a discount of up to 15% off your premium for buying both products.

Only Buy The Homeowners Insurance Coverage You Need

Homeowners insurance policy limits should be revisited every year to reevaluate any major purchases and additions. On the other hand, many of the possessions that homeowners insure depreciate significantly over the course of a year. Homeowners should update their home inventory, and reevaluate policy limits for possible savings.

Further, homeowners shouldn't spend money for coverage they don't need. For example, if you don't live in a flood-prone area, you may not need costly flood insurance.

Consider Raising Your Deductible

Increasing your deductible by just a few hundred dollars can make a significant difference to your premium. Most deductibles start at $250; therefore, if you raise your deductible from that to $1,000, you may save nearly 25% on your premium.

Look For Discounts That May Apply To You

There are a myriad of homeowners discounts that go unrecognized by many consumers. For example, even though they seem ordinary, you may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material.

A new home's electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older home; therefore new homes are usually charged lower rates than older homes in the same price range.

Strong home security in the form of security systems, alarms, gated communities, double locks on both doors, etc. often afford you lower rates.

Non-smokers usually get reduced rates on their homeowners insurance policy. If you were a smoker when you bought your house, but have subsequently quit, many insurers may lower your rates. Smoking accounts for over 20,000 residential fires in the U.S. a year, so insurers often charge lower premiums to smoke-free households.

Insure Your House, Not the Land Under It

Consumers often overpay for homeowners insurance by including the value of the land that their home resides on. Remember that you only need to insure the home itself and your possessions, not the land. Should something unfortunate occur, the land will most likely remain. If you do not subtract the value of the land when deciding how much homeowners insurance to buy, you will most likely pay more than you should.

Increasing the safety features on your house could lower your homeowners insurance premium. By shopping around and comparing quotes using InsWeb's online questionnaire, you can compare insurance quotes from leading homeowners insurance companies in minutes!